From: Janelle White
Shareholders in the US market refuse to be the "collateral damage" of hedge funds, manipulation, "political clout", and a system that is without "integrity".
The Securities and Exchange Commisssion was established to instill investor confidence within the financial marketing system. There are no provisions stating that this "commission" was to created to serve a select few. Sadly, the evidence is overwhelming that the SEC has failed to achieve the goal for which it was intended.
With the establishment of the "grandfather clause" in REG SHO, the SEC has allowed investor dollars to be squandered, small companies to be destroyed, and manipulators to go unpunished.
To add insult to injury, they have delayed closing the loophole, leaving investors and companies vulnerable to the very predators that continue to rape and pillage the system.
I do not think I go too far by asking who it is that they are protecting, as it is neither the companies nor the "investors lacking political clout" that they have a vested interest in.
Former Secretary of Treasury Paulson, stated the drop in initial public offereings within the US market was directly because the provisions of SOX was too demanding, too expensive, and too complicated.
I beg to differ. If I was a business owner, thinking of taking my company public, I would take it to a place where it would not be the victim of manipulation. I would take it to a place where the rules of the market made sense. I would take it to a place where the rules of the market would be strictly enforced. To put it bluntly, there's no way I would list my company on any of the exchanges, for which the SEC would be the overseer.
Ladies and gentlemen, if the service and food in the most elegant of restaurants is "bad", how many would be willing to return to the restaurant again? If someone you trusted, told you how bad the service was, would you be inclined to dismiss their judgment, or look for another restaurant?
I can't make it any clearer than the examples above. This is where we are.
By enacting the "grandfather clause", the SEC did nothing less than authorize the "counterfeiting" of securities. By refusing to enforce the close-out provisions of REG. SHO, as companies have languished on the threshold securities list for hundreds of days consecutively, the SEC has aided and abetted those who are guilty of manipulating our markets and our companies. The SEC wants the Congress to believe REG SHO is working. Ask them how many companies they have chosen to delist without forcing open failures to deliver to be covered.
Because of majority of these companies are nonreporting and are listed in the otc and pink sheet sector, does not make them less important than stocks listed on major exchanges. There are many companies that started in these markets to gain funding to promote and expand their companies. However, crime goes largely unpunished in these areas, many companies become victims. They are unable to raise needed capital becauste their share prices are severely depressed due to manipulation, naked short selling, death spiral financing, hedge fund influence, and a "commission" would would rather sweep the problem under the rug by taking administrative action, instead of fixing the actual problem.
I am sickened by what I have witnessed. I have no confidence in the SEC. I will not invest another dime in the US market until the problems are corrected.
As representatives of the people, it is in your power to correct what the SEC has failed to oversee. I hope you take this task seriously, as I, along with thousands of others, continue to monitor this situation closely.
Eliminate the "grandfather clause" in REG SHO. Force those who have open positions to cover what they have sold, regardless of the status of the company. They have no right to benefit from the proceeds of company stock that did not ' exist. This money belongs to the companies, not those who manipulated them. Without "integrity", companies will continue to succumb to the manipulative practices which thrive without true oversight.